Bloomberg’s David Westin spoke with Berkshire Hathaway Chairman Warren Buffett on his 87th birthday before his charity auction lunch at Smith & Wollensky’s in New York.
Among the topics discussed was the Fed’s upcoming balance sheet normalization: Buffett told Westin that the Federal Reserve will be ‘very careful’ with how they handle quantitative easing as the Fed may have to find buyers for “trillions” in assets. Predictably, Buffett argued in support of QE which added tens of billions to his net worth: ‘[QE] did wonders for us coming out of 2008. Without it we would have gone back to the economics of 100 years ago. If the Fed had not been there to ease, we would have had a far different recovery. I think the Fed has overwhelmingly done the right thing. Now, we’ve never gone through a period like this and how it will all work out, we will find out. I think they will be intelligent about it but they’ve never played this game yet either.’
This post was published at Zero Hedge on Aug 30, 2017.
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